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9,100+

Completed DST Transactions

2,270+

Investors Nationwide Have Chosen to Invest with Kay Properties

$39B

In total DST 1031 Offerings Participated

50

Licensed in all 50 States

340

Years of Team Member Real Estate Experience

25

DST Sponsor Companies

20-40

DST Offerings

The Kay Properties Platform provides access to the marketplace of 20-40 DSTs from over 25 different sponsor companies, custom DSTs only available to Kay clients and a DST secondary market.

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Login to access the Kay1031 Marketplace and view the different DST sponsor companies and available DST 1031 Investment Properties

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Register for Access to the Kay 1031 Marketplace and Receive Free Access to Over 25 Different DST Sponsor Companies and between 20-40 different DST 1031 Investments

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DST Resources

Access DST 1031 Investments from over 25 DST 1031 Sponsor Companies

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Custom DST
Property Access

Our clients have the ability to participate in private, exclusively available, custom DST offerings as well as those presented by over 25 DST sponsor companies.

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DST Offering Examples

Houston Multifamily 42 DST

Houston, TX

Loan to Value	38.40%
Minimum Investment	$50,000
Type of Asset	Multifamily
1031 Exchange Qualified	Yes
Offering Type	506c

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Winston Salem FedEx DST

Winston Salem, NC

Loan to Value	0% - All-Cash/Debt-Free
Minimum Investment	$50,000
Type of Asset	Industrial
1031 Exchange Qualified	Yes
Offering Type	506c

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Debt Free Charlotte Pharmacy DST

Charlotte, NC

Loan to Value	0% - All-Cash/Debt-Free
Minimum Investment	$50,000
Type of Asset	Net Lease
1031 Exchange Qualified	Yes
Offering Type	506c

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Tampa International DST

Tampa, FL

Loan to Value	0% - All-Cash/Debt-Free
Minimum Investment	$50,000
Type of Asset	Office
1031 Exchange Qualified	Yes
Offering Type	506c

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San Antonio Multifamily 33 DST

San Antonio, TX

Loan to Value	0% - All-Cash/Debt-Free
Minimum Investment	$25,000
Type of Asset	Multifamily
1031 Exchange Qualified	Yes
Offering Type	506c

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Seacoast DST

Chesapeake, VA

Loan to Value	0% - All-Cash/Debt-Free
Minimum Investment	$50,000
Type of Asset	Net Lease
1031 Exchange Qualified	Yes
Offering Type	506c

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Debt Free Washington Pharmacy DST

Port Orchard, WA

Loan to Value	0% - All-Cash/Debt-Free
Minimum Investment	$50,000
Type of Asset	Net Lease
1031 Exchange Qualified	Yes
Offering Type	506c

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Interchange DST

Riverview, FL

Loan to Value	0% - All-Cash/Debt-Free
Minimum Investment	$50,000
Type of Asset	Office
1031 Exchange Qualified	Yes
Offering Type	506c

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Missoula Multifamily DST

Missoula, MT

Loan to Value	0% - All-Cash/Debt-Free
Minimum Investment	$25,000
Type of Asset	Multifamily
1031 Exchange Qualified	Yes
Offering Type	506c

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*All offerings are subject to availability and may not be available. Please read the full Private Placement Memorandum for a complete discussion of the business plan and risk factors of each offering prior to investing. We are unable to provide tax or legal advice. Please speak with your CPA and attorney for advice and guidance regarding your particular situation.

As Showcased in these Leading Business Publications

2022 Ones to Watch: Dwight Kay, Founder & CEO at Kay Properties & Investments

What recent project, transaction or accomplishment are you most proud of? I think the accomplishment I am most proud of so far is the record year Kay Properties recorded in 2021. The firm posted $610 million of equity from accredited investors which represented a 49.5% increase over the previous year. Why this is so impressive to me is because it represents the total vision of Kay Properties coming into focus. This means a fully operational integrated real estate team of consummate professionals that assist our clients using our best-in-industry only real estate investment platforms.

What does it take to succeed in your specific industry? Because the Delaware Statutory Trust is a complex tax code, the only way to succeed is if our clients are fully educated on 1031 Exchanges and the Delaware Statutory Trust (DST) investment vehicle. That’s why we spend a great deal of time, energy, and resources to make sure each client is fully aware of the required timelines, nuances, and especially the risks, benefits, and strategies available to DST investors. On top of that, it also takes having relationships with a variety of DST sponsor companies that have access to investment-grade properties that are only available to Kay Properties clients.

What led you to your current profession? I built Kay Properties and Investments with the vision of reducing concentration risk for investors by providing them a broad menu of DST opportunities available for their 1031 exchanges and cash investments. I wanted to ensure that our clients were not putting their hard-earned nest eggs in one single basket. Instead, I sought to avoid concentration risk by providing investors with the options of spreading their equity over many properties, geographic locations, tenants, DST sponsor companies, and DST offerings. As a result, I started building relationships with DST sponsors in the industry that were willing to develop debt free DST solutions for investors.

What are the Top 3 Items for Your Bucket List? My bucket list for the future really revolves around building a real estate investment firm that is poised for success regardless of market conditions. Specifically, this means emphasizing a defensive stance when it comes to investment strategies to minimize downside risk. It also means continuing our dedication to our “integrity first” business model that emphasizes transparency, education, and one-on-one relationships with our clients that provide custom investment solutions. Finally, we want to create a company that embraces professionalism and provides a climate where our team members can not only reach their goals, but also exceed them.

What do you like to when not working? I am a proud husband and father of four children, ages 1-to-13. I think that explains my time when not working.

Kay Properties Announces Record Second Quarter and First Half of Year Results for 2022 in Total Equity Placed and Number of Transactions Completed on Behalf of Delaware Statutory Trust 1031 Exchange and Direct Cash Investors

Sep 07, 2022 (PRNewswire via COMTEX) -- PR Newswire

TORRANCE, Calif., Sept. 7, 2022

The fully integrated Kay Properties real estate investment marketplace successfully completes $215 million in equity placements for the second quarter and $357.8 million for the first half of 2022, setting new records for the real estate investment firm

TORRANCE, Calif., Sept. 7, 2022 /PRNewswire/ -- Kay Properties & Investments, which operates one of the nation's largest 1031 exchange property and real estate investment marketplaces, announced it has posted record second quarter results after successfully placing $215,450,440 million in equity for accredited investors participating in 1031 exchange Delaware Statutory Trust (DST) investments, Qualified Opportunity Zone Funds and direct cash investments into private real estate offerings. In addition, Kay Properties and Investments also reported record numbers for the first half of 2022 after placing $357,835,409 million for accredited investors.

These numbers represent an increase of 67.57% for the second quarter and 39.89% increase for the first six months of 2022, marking significant progress toward, God willing, another record-breaking year.

Record Number of Transactions for the Quarter and First Six Months of 2022

For the second three months of the year ending on June 30, 2022, Kay Properties also saw a 38.87% year-over-year increase in total number of transactions on the www.kpi1031.com marketplace performed on behalf of accredited investors who invested in DST assets within the multifamily, manufactured housing, single tenant net lease, industrial, self-storage and medical asset classes as well as direct cash investments into other real estate offerings. For the first half of 2022, Kay Properties saw a 24.46% increase in total transactions that translated into more than $357.8 million in placed equity, a large part of which were invested in unlevered/debt-free assets in order to minimize risk potential for investors.

Founded by CEO Dwight Kay, Kay Properties & Investments is considered an expert 1031 Exchange and DST investment firm, providing real estate investment options to high-net-worth clients seeking a passive management structure, and potentially broadening their real estate asset diversification via geography, asset class, and tenant mix.

The firm's results for the second quarter and the first six months of 2022 amplify its belief that Kay Properties has created one of the largest 1031 exchange and real estate investment online marketplaces in the country and generates some of the largest direct to accredited investor investment volume in the United States.

"The www.kpi1031.com online marketplace has truly become a best-in-class robust platform connecting high-net-worth investors with quality real estate offerings as well as a place for real estate sponsors and operators to connect with tens of thousands of high-net-worth investors seeking to deploy capital into real estate offerings. We believe our second quarter results reinforces our belief that the Kay Properties platform creates a perfect match for all sides of the 1031 exchange, DST, QOZ and private real estate investment equation," said Dwight Kay, Founder & CEO of Kay Properties & Investments.

Kay Properties' Successful Business Model Emphasizes Unlevered/Debt-Free DST Assets for Potential Reduced Exposure to Risk

Other notable trends for the second quarter include a growing number of investors across the country being attracted to Kay Properties' business model that was founded on the philosophy of providing custom DST properties and real estate funds using an unleveraged/debt-free strategy, providing investors several potential advantages including no risk of lender foreclosure, no lender prepayment penalties or defeasance costs and no lender cash flow sweeps. This emphasis on providing investments on an debt-free basis also provides greater flexibility to hold through any potential market downturns, credit crunches, recessions and/or depressions.

"We continue to see a growing number of high-net-worth investors recognizing the value of investing in DST properties, private real estate investment funds, and other real estate offerings that operate without the use of borrowed money. In addition, investors continue to be drawn to DSTs as a tax deferral strategy for their 1031 exchanges as well as direct investments into real estate opportunities via the Kay online real estate marketplace at www.kpi1031.com. We wouldn't be in this amazing position if it wasn't first and foremost for the Lord, our amazing clients, and our team members nationwide," stated Kay.

Bonus! Delaware Statutory Trusts Can Be Both an Anchor and Buoy Investment

Usually investments are sought out as anchors OR buoys for your portfolio, but DSTs can embody positive traits from both investing styles.

For investors currently considering a Delaware Statutory Trust investment for either their 1031 exchange or direct-cash investment, one of the first things to consider is what investment strategy should be pursued? For example, is the goal to achieve greater appreciation, even if it means investing in an asset that carries greater risk? Or rather is the long-term strategy to have steady monthly income, even if it means lower overall appreciation potential?

Sometimes, investment professionals call this the “anchor and buoy” investment theory. One of the beautiful things about Delaware Statutory Trust investments is that they can potentially provide investors the benefits of both the anchor and buoy investment strategies.

How Can a Delaware Statutory Trust Be a ‘Buoy Investment’?

A Delaware Statutory Trust is a real estate ownership structure that allows multiple investors to each hold an undivided beneficial interest in the holdings of the trust. The term “beneficial interest” means that investors hold a percentage of the ownership, and no single owner can claim exclusive ownership over any specific aspect of the real estate. The laws of DSTs allow the trust to hold title to one or more investment properties that can include commercial, multifamily, net lease, retail, office, industrial, self-storage, etc.

To better understand how to use the anchor and buoy theory to evaluate potential DST investments, consider a multifamily building that has 500 tenants. First, while residential properties use comparable sales or “comps” to approximate valuation, multifamily properties are also valued based on the amount of net operating income (NOI) they produce. NOI is calculated by subtracting a property’s operating expenses from its gross income.

Gross income is derived from the sum of all sources of income for the multifamily property. While the vast majority of income comes from rent payments, there could also be ancillary sources of income, such as covered parking fees, laundry/vending income, pet rent income and even rent for storage unit access.
On the flip side, operating expenses are the costs required to run the multifamily property on a day-to-day basis. Although these amounts vary depending on the type of building, the line items typically will be very similar. These can include utilities, taxes, insurance, maintenance, property management fees and even legal fees.

In this example, the multifamily building has a diversified tenant base of 500 tenants who are paying rent each month. Additionally, because most multifamily assets use an annual lease, landlords have the opportunity to potentially raise rents every year. In addition, any vacancies can provide owners another opportunity to potentially raise rents when filling the vacancy. In this way, multifamily properties act like a buoy, moving and adjusting with the conditions.

While all real estate investments have some form of material risks associated with them, such as interest rate risks, vacancies, general market conditions and financing risks, many investors like assets like multifamily and self-storage because they have the potential to appreciate over time. In addition, multifamily and self-storage are considered good “buoys” to potentially hedge against inflation, because owners can hopefully raise the rents each year to help offset rising costs.

How Can a Delaware Statutory Trust Be an ‘Anchor Investment’?

So, if a multifamily building or self-storage facility are considered “buoy” DST investments, then what is an “anchor” DST investment? Many investors consider a commercial net lease type of asset as more of an anchor investment for their DST 1031 exchange investments. Net lease arrangements are where the tenant pays a portion of or all of the expenses associated with the commercial property, including taxes, insurance fees, and maintenance costs in addition to a base rent.

Net lease properties can be considered more of an anchor because instead of using NOI and market capitalization rates (cap rates) solely as a valuation measurement, most commercial net lease assets are going to additionally tie the valuation of the property with the creditworthiness of the tenant. For example, Joe’s Pizza Shop is not as creditworthy of a tenant as FedEx or Walgreens, both of which are considered investment grade tenants. Joe’s Pizza Shop can shut down, and investors are left with an empty building, which comes with the potential for expensive maintenance costs and unpaid rent. While it is possible that FedEx or Walgreens can also shut down a location, the odds are that these multibillion-dollar public companies will continue to pay rent as they have investment-grade credit ratings by Standard and Poor’s.

What is a 1031 Exchange DST?

A 1031 Exchange Delaware Statutory Trust (DST) is a legal entity created for the purpose of holding title to investment real estate. As a form of passive real estate ownership, DSTs allow investors a chance to diversify their portfolios by placing their money into multiple properties instead of just one. Since DSTs are a “like-kind” 1031 exchange, they can be used to defer capital gains taxes.

LEARN MORE AT OUR WEDNESDAY WEBINAR

Why Kay Properties & Investments?

$30B In total DST 1031 Offerings Participated

Licensed in all 50 States

200 Years of Team Member Real Estate Experience

25 DST Sponsor Companies

20-40 DST Offerings

Betty Friant did a tremendous job of assisting us with the DST process. With her wealth of experience, she was able to field all our questions and help us find the DST properties that suited us best.

Rob E. - Bethesda, Maryland

I would like to express my appreciation for exemplary service from Jason Salmon. I was a novice to the world of the DST and 1031 exchange process. Jason worked with me every step of the way to guide me through what was initially for me, a very confusing and intimidating investment vehicle. He exhibited great patience and knowledge to help me achieve my goals. I look forward to working with Jason again in the future.

Ronald J. - Westhampton Beach, NY

Chay Lapin was an invaluable resource for me as he helped me work through my recent exchange. He was very accessible and worked hard to find just the right replacement property to meet my needs. He also had technology that made finding the right match to my set of unique numbers, so much easier. I would recommend him to anyone with this particular need.

Vera D. - Palo Alto, CA

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These testimonials may not be representative of the experience of other clients. Past performance does not guarantee or indicate the likelihood of future results. These clients were not compensated for their testimonials. Please speak with your attorney and CPA before considering an investment.

"I’ve really enjoyed working with Orrin and Chay. They have a tremendous knowledge of all the intricacies of 1031 exchanges and are able to recommend high quality properties to invest in. I feel as though they do a great job reviewing and evaluating different options before they present them to me"

Bruce G., Manhattan Beach, CA

“Hi, Betty: Thanks for all the help and guidance into the world of the Delaware Statutory Trust. The assistance helped me make de-cisions which will affect my legacy for my children, and my philan-thropy for the years to come. Thanks to you and Orrin, I didn’t wind up with just one Pizza Hut ,but with some real estate which might fuel some of my larger dreams. The education is invaluable. I hope to see you more frequently.”

Dr. Paul E., Ed.D, Washington D.C.

“Going forward, we are very happy with our monthly paycheck and the knowledge that we are part-owners of professionally managed real estate in good markets with strong tenants"

David A., Severna Park, MD

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Easily Find DST Replacement Properties for your 1031 Exchange

9,100+

2,270+

$39B

50

340

25

20-40

Already a Member to the Kay 1031 Marketplace?

New Visitors

DST Resources

Custom DSTProperty Access

DST Offering Examples

Houston Multifamily 42 DST

Houston, TX

Winston Salem FedEx DST

Winston Salem, NC

Debt Free Charlotte Pharmacy DST

Charlotte, NC

Tampa International DST

Tampa, FL

San Antonio Multifamily 33 DST

San Antonio, TX

Seacoast DST

Chesapeake, VA

Debt Free Washington Pharmacy DST

Port Orchard, WA

Interchange DST

Riverview, FL

Missoula Multifamily DST

Missoula, MT

As Showcased in these Leading Business Publications

What is a 1031 Exchange DST?

Why Kay Properties & Investments?

Custom DST
Property Access